The greatest appeal of used cars is that they are cheaper than brand-new cars. In fact, a 2016 survey of 4,977 respondents revealed that 88-94% of customers consider price their top priority when buying a car. Affordability is not its only attribute, though, because used cars may also be available in mint condition. These are the models that truly give customers great value for money.
No loss due to depreciation
Car experts say that the moment you drive your brand-new car out of the dealership, its value begins to depreciate. The value of any vehicle always goes down fastest during the first two years of use. Beyond that, the depreciation rate slows.
This means if you buy brand-new and trade it in three or five years later, expect to get a much lower net. According to Forbes, a brand-new 2010 BMW M3 Coupe which retails for $58,400 will depreciate by 56% in five years; owners will only net around $26,000 if they decide to sell it.
If you purchase a three-year-old luxury car (which is the perfect age for used cars, according to Consumer Reports) and trade it in two or three years later, however, the price gap will be significantly lower. The exception will be if the vehicle is in poor condition and if it rates poorly in performance tests.
Lower costs for updates and rework
The one thing used cars have going against them is that updates and reworks are inevitable. This is true, but only to an extent. If a used car is in mint condition, the repairs will be minimal.
Tyackemotors.com, a used car dealer in Utah, stands by the quality of mint used cars. These cars have low mileage, received proper care from their previous owners, and run almost as well as a new model. Buyers can still enjoy the benefits of a new car, too, like fuel economy and a smooth engine.
Looking at the value equivalent of a brand-new, mid-range car and that of a used luxury car shows how practical the latter option is. For example, a brand-new Honda Accord sells at $33,800. For roughly the same price, it’s possible to buy a three-year-old BMW 328i or Mercedes Benz E350 with only 30,000 miles.
Given the abundance of car collectors and used car dealerships today, it’s possible to own a luxury vehicle without breaking the bank. As long as buyers find a used vehicle that’s still in mint condition, they will surely get their money’s worth.